Professional Practice Standard

Topic: Business Ethics

Position Statement

As an industry leader of health information and management systems professionals, HIMSS has undertaken a review of the industry’s business practices to ensure that professional standards are above reproach. That review has resulted in the following position statement:

Providers, vendors and consultants may be either purchasers or suppliers. Be truthful and forthcoming in product/company representations and acknowledge conflicts of interest.

Background of Topic

Improprieties in the business community have led the American public to examine business practices across all industries. Consumers and government demand that organizations conduct business in a highly ethical manner.

The healthcare industry is no stranger to conflicts of interest. A growing number of individuals and companies are reviewing the vast amount of money spent on healthcare. As healthcare adopts business models similar to those of other industries, new conflicts of interest may arise.

In light of these developments, HIMSS recognizes that organizations must prove to both investors and the general public that business practices in the field of health information and management systems are pursued openly and honestly.

This professional practice standard will function as a reference for health information and management systems professionals for conduct that constitutes the highest level of ethical business practices.

Research/Discussion

Challenges constraining healthcare organizations’ fiscal well being include:

  • Severe healthcare workforce shortages
  • Increasing costs of healthcare products and services
  • Continued growth of the uninsured population
  • Increased accounting and healthcare regulations
  • Increased costs of liability insurance
  • Declining reimbursements from third party payers
  • Growing expectations for patient safety and quality of care
  • Demand for emergency preparedness
  • Escalating drug costs
  • Risk management issues
  • Public health issues
  • Emergency room overcrowding
  • Government mandates for confidentiality and security
  • Growing public scrutiny
  • Continued disparities in access to and quality of healthcare for all ages
  • Decrease in capital funding with increased demands for spending

After reviewing similar organizations and other health industry trade groups, including the Health Industry Group Purchasing Organization (HIGPA), the American College of Healthcare Executives (ACHE), American Medical Informatics Association (AMIA) and the American Society of Health-System Pharmacists (ASHP), HIMSS determined that each has a position statement on ethical business practices. These statements, along with HIMSS’ Code of Ethics, guided the development of this position statement.

In addition, many healthcare providers, vendors, and consultant organizations have or are engaged in the process of developing a Code of Ethics. These policies focus on stating the advantages of computer technology, encouraging the use of new technology, articulating the responsibilities associated with the use of information and information sharing, and exhibiting the same high level of courtesy and behavior consistent with their organizational values.

Professional Practice Standards:Business Ethics for Healthcare Information and Management Systems Organizations

Disclosure:Individuals employed by a buyer organization, and involved in purchasing decisions, will fully disclose any arrangements that may influence purchase decisions including:

  • Stock ownership and offerings
  • Positions of influence such as seats on the board of directors
  • Family relations with sellers
  • Membership in seller special interest groups or committees

Sellers will be truthful in representing their products, and current system capabilities including:

  • Scope and circumstances of Licensures
  • Silent partnerships with third party vendors
  • Realistic implementation timelines
  • Accurate equipment configurations
  • Clinical experts who provide education or other services who may also use a seller’s system in demonstration or practice, and are reimbursed by the seller
  • Planned replacement/sunsetting of products, (including third-party products) being licensed by the buyer
  • Sample contracts, site visits and reference checks that are valuable to both the customer and the vendor.

All financial arrangements will be disclosed including:

  • All costs and expenses to be charged/paid under the contract for the products and services being purchased by the buyer (i.e. no hidden fees/expenses)
  • Costs and expenses of third party products, both contracted and optional
  • Gifts exchanged with more than a nominal value between the seller and the purchaser

Conflict of Interest:Those individuals who have a personal interest or gain through the outcome of the purchase/sale, for whatever reason, must disclose the cause of potential conflict and, if appropriate under the circumstances, remove themselves from the negotiation process.

An individual who becomes aware of an actual or potential conflict of interest has a duty to report the conflict to appropriate executives within his or her organization, and/or to his or her board of directors or board of ethics.

Fairness:In an attempt to ensure a fair bidding process, no vendor who applies shall be excluded in the bidding process.

Buyers will be fair to all vendors under consideration by becoming equally familiar with all relevant vendors’ products, benefits, and cost structures.

Impartial Review:All contracts will undergo an approved and indiscriminately applied analysis to ensure that the above conditions have been met.

Approval:Approved on September 17, 2004 by HIMSS Board of Directors

References

ACHE Policy Statements,

AMIA Conflict-of-Interest and Disclosure Policy,

ASHP, (2002), Best Practices for Health-System Pharmacy, Bethesda, MD.

The CHIM Code of Business Conduct (merged with HIMSS, 2002)

HIMSS Code of Ethics

Health Industry Group Purchasing Association Code of Conduct Principles,

9/2004